Category Archives: Unclaimed funds

Ontario is seeking budget input from Ontarians but there’s been no action so far on an old budget item now worth $2 Billion

There’s approximately $2 billion in Unclaimed Property that is sitting with various organizations across Ontario that needs to be returned to hard-working Ontarians. $2 Billion would also serve the Ontario budget in a big way now and in years to come.

Ontario is the largest jurisdiction in North America without an unclaimed property law to protect consumers. While Ontario was the first Canadian province to pass unclaimed property legislation in 1989 the statute was not proclaimed into force and the legislation was repealed 22 years later in 2011. The 2012 budget announced Ontario’s intention to try again and create an unclaimed property scheme that would mirror that of the US where legislation has been in force for over 50 years. And yet, there has been no follow-up from consultations that occurred in 2013. Why ?

We submitted an 8 page document advocating for the rights of Ontario residents for this legislation during consultations in 2013. We and jurisdictions around the world feel pretty passionately that Unclaimed Property is an important aspect of consumer protection that is missing in Ontario. The estimated $2 billion + in unclaimed/lost financial assets for Ontario comes in a variety of forms including unclaimed bank/trust/credit union accounts, insurance policies, share certificates, dividends, unclaimed wages, bonds, pensions and other property types including prepaid funeral deposits and utility deposits etc..

Unclaimed Ontario savings bonds alone total more than $65 Million.

The Law Society of Upper Canada (Ontario) has more than $3 Million in unclaimed trust accounts. No one knows what the total of Unclaimed accounts held by Ontario credit unions would total because for the last 20 years, Credit Unions have been waiting for further instructions. Legislation would ensure that any organization in Ontario holding unclaimed or lost deposits or financial assets would transfer them to the Province and a comprehensive database would be available for Ontarians to look for those assets while the Province or a related agency would proactively look for legal owners.

Despite the fact that no ones loses track of their assets on purpose and assets generally become lost as a result of a tragic event or forgetfulness, in Ontario there is no law that requires the holders of unclaimed financial assets to look for the asset owners. So no one including the Province is looking for you if your Great Aunt Martha purchased a life insurance policy for you or if your Grandma Shirley opened a credit union account for you when you were born. We would argue that`s not “very Canadian” .

Legislation would be a win/win for Ontario residents and the Province of Ontario as unclaimed financial assets are typically utilized by the government or jurisdiction that holds those accumulated assets until claimed. The USA has more than $58 Billion in Unclaimed financial assets being used in this way. Unclaimed assets are sadly becoming a larger part of the revenue for many states including most notably California and New York.
While facts are sparse given a lack of legislation across Canada (outside of Alberta and Quebec where legislation has been enacted), there has been an alarming increase in unclaimed financial assets in recent years. Given aging demographics and the digital world in which we live, that increase will probably rise significantly. So why is Canada and Ontario in particular so far behind other jurisdictions like the US, Australia, New Zealand, the UK etc?

More importantly, why is a cash strapped Ontario government not following up with Unclaimed Property legislation that they started re-discussing in 2012 ?

Does the government of Ontario really have too many other pressing priorities that might be as advantageous as Unclaimed Property Legislation both from a financial and consumer protection perspective ?

It’s time for Ontario to catch up and do what is right for Ontario taxpayers/residents and their the Provincial treasury. Have your say during budget consultations with Ontario by linking to the Province of Ontario here We have and we hope you will share this post with others if you agree with the need for Unclaimed Property Legislation in Ontario.

Another year, another alarming increase in Lost Bank accounts for Canadians

I am happy that the Bank of Canada this week, updated their website with the balance of unclaimed or lost bank accounts as at December 2015. Last year, I had to make 5 requests for the updated balance & the related database of individuals with balances owing to them as of December 2014. Only after I involved the CBC who without much hesitation did a program on the problem of Unclaimed financial assets in Canada did the Bank of Canada update the information on their site for the benefit of Canadians. I was thrilled about the CBC program that helped to shine a light on the problem of lost bank accounts and Unclaimed Financial Assets in general. I was also quite relieved when the Bank finally updated their website in late April last year.

But while I’m happy about the prompt updating of lost bank account information for 2015; I`m disturbed by the increase again this year in the value of lost bank accounts last year.

Another$59 Million in lost bank accounts for 2015, making the overall balance owing to Canadians some $626 Million.

That’s an increase of 10.2% which is similar to last year when $56 Million was added to the unclaimed bank account balance. Considering the population of Canada is some 36 million; the increase is substantial as it the total balance of $626 Million in lost bank accounts. Claimed amounts are dismal at $10-$11 Million for each of the last 2 years.

Check out the disturbing details of lost bank accounts that I have been obsessively passionately tracking for the past 8 or so years:

Too many lost bank accounts are being held by the Bank of Canada

Unclaimed Property Legislation for Canadians is an important aspect of consumer protection that’s missing for the majority of Canadians and advocacy for such legislation is a lonely battle despite the sheer magnitude of an estimated $6 – $7 Billion in Unclaimed assets in Canada. The Bank of Canada holds approximately $1 Billion between the $626 Million in Unclaimed or lost bank accounts and another $500 Million (+) in Unclaimed Canada Savings Bonds. However, there’s an estimated $5 – $6 Billion or so in other Unclaimed financial assets that Canadians have misplaced like credit union accounts, trust accounts, insurance claims, pension funds, education funds, prepaid funeral deposits, savings bonds, shares/dividends etc.

It’s time Canada caught up to the US and the majority of other developed nations and provided citizens and taxpayers of Canada consumer protection in the form of Unclaimed Property Legislation. The US has had such legislation in place for more than 50+ years. Unclaimed Property legislation would ensure that all unclaimed financial assets are centrally held, reported on and most importantly, owners would have a better chance of being found.

It`s rather…UnCanadian not to have Unclaimed Property legislation in place for Canadians

No one loses track of their hard-earned financial assets on purpose. It’s generally the result of a tragic event or forgetfulness. It would ease the burden on executors that look for financial assets when an individual passes along. Reuniting legal owners with their financial assets would generate economic action. In cases where owners can not be found, unclaimed financial assets would supplement government treasuries that are cash strapped. It’s a win/win for Consumers and Government to move forward with legislation. So why is Canada so far behind.

Please take a moment to look for your name or the name of your friends or family members using the updated Bank of Canada Unclaimed Balance data base

The fact is: Canada is woefully behind when it comes to Unclaimed Financial Asset Legislation

Typically, Economic Action Plans that we are familiar with consist of infrastructure spending including roads and buildings costing millions in taxpayer money. But what about a different kind of economic action plan that would cost millions less but generate more than a billion of economic action? This under the radar, economic action plan in waiting is about ensuring that each Province and Territory across Canada put into place comprehensive & consistent Unclaimed Intangible Property Legislation.

Unclaimed funds could spur a lot of economic action

Connecting or reuniting Canadians with the hard-earned/unclaimed (often tax paid) financial assets that they are legally entitled to is the goal of Unclaimed Property Legislation. And yet, the majority of Canada (outside Alberta and Quebec) is way behind in putting such legislation in place which also makes it difficult to pinpoint the actual value of Unclaimed Financial assets currently in Canada. However, experts estimate the total value to be between $6-$7 Billion. That’s a lot of cash that too many governments across Canada (outside of Alberta & Quebec) are failing to gather up, safeguard and share information on for the benefit of Canadians. That’s way too much cash that too many governments across Canada are failing to capitalize on for their own budgets as they do in other countries like the US. In most US states, unclaimed financial assets are now a major help to state budgets. California is estimated to use some $400M annually for their state budget from unclaimed property that’s still available to legal owners should they be found.

The Bank of Canada alone has on deposit approximately $1 Billionin the form ofUnclaimed Canadian $ Bank accounts (from federally chartered bank accounts only) and Unclaimed/Matured Canada Savings Bonds. Unfortunately, no one is looking for legal owners despite the fact that information would be readily available from government records.

Let’s face it.

Nobody sets out to lose their financial assets on purpose & people generally work hard for their money. However, as we know far too well, people can become incapacitated or die quite suddenly or forget or move or not have the financial literacy skills required to ensure that their money is properly safeguarded for their own use or for their heirs down the road. That’s why most of the Western World like the US considers Unclaimed Property Legislation to be an important part of Consumer Protection Legislation. The US has had such legislation in place for more than 50 years & currently holds approximately $58 Billionin unclaimed assets.Yes. $58 Billion. The difference is that a lot of this $58 Billion in the United States can be found on individual State websites. State Treasuries proactively look for the legal owners of those funds while utilizing those funds to supplement state finances. Given that the problem of Financial assets is growing at an alarming rate, Canada is way overdue in ensuring that Unclaimed Property legislation is in place across the Country. All Provinces and Territories need to get on board.

Contents of Safety Deposit Boxes-which may include valuables and sentimental items

Uncashed payroll cheques

Unused Gift Card balances

It seems reasonable that ALL Canadians deserve to have their financial assets safeguarded by Unclaimed Property Legislation. We think reuniting Canadians (or their heirs) with their own money is the right (and Canadian) thing to do. It’s good for everyone including the economy to get this money back to rightful owners and back into circulation.

If you believe more Canadian jurisdictions should put consumer protection in place by way of Unclaimed Property legislation, please pass this post along and speak with both your MPP and your MP about the issue. As always, feel free to contact us for more information. As one of the few advocates for Unclaimed Property legislation in Canada we would be pleased to offer more information and to receive your help in shining a light on this issue.

Given the alarming value of Unclaimed financial assets in the US ($58Billion+) despite the existence of Unclaimed Property legislation, we know that legislation is only part of the solution to reducing the risk of assets becoming lost or unclaimed. That’s why we’ve built a simple, secure solution that helps individuals and families better organize their important information in order to:

Engage more proactively in financial/estate planning

Enhance their level of emergency preparedness and

Help reduce the risk of hard-earned financial assets from being lost or forgotten

Get in touch with us anytime to learn more about the need for Unclaimed property legislation or LegacyTracker.

A ship missing for 310 years was found off the coast of Colombia in the Gulf of Mexico this past week carrying gold and jewels worth $17 US billion. It’s been called the “Holy Grail” of sunken treasures.

That’s all really exciting but the recovery will be difficult and already a bitter battle has arisen over what may be the world’s largest sunken treasure between Columbia, Spain and a US salvage company. The Columbian government is currently treating the wreck as a state secret to avoid further plundering.

While it’s hardly a State secret, sunken treasure in Canada does exist in the form of unclaimed property or unclaimed financial assets owned by hard-working Canadians. Yet, it’s barely easier to find and doesn’t get barely the attention it deserves.

There’s a Billion dollars in unclaimed property in the Bank of Canada between lost bank accounts and matured/unclaimed Canada Savings Bonds and no one is looking for the legal owners of that treasure despite the information naturally at the disposal of such a worthy crown corporation as the Bank of Canada. While there’s a listing that is updated annually on the Bank of Canada website for unclaimed bank accounts, take note that those bank accounts are only accounts that have had no activity for 10 years and don’t include accounts in foreign currency.

More unfortunately, very sadly and for some unknown reason, no listing of owners exists for the $500+ Million in Unclaimed Canada Savings bonds. Whereas the same can not be said for unclaimed bank accounts, Canada Savings Bonds can only be registered by individuals living in Canada so the entirety of this sunken treasure belongs to Canadian individuals and families. It certainly seems “UnCanadian” for the Bank of Canada to 1) not look for those individuals considering that they have their SIN numbers at hand 2) allow Canadians to more easily find their hard-earned savings bonds.

There’s a multitude of other forms of unclaimed financial assets in Canada that make up sunken treasure in Canada. The estimated total of unclaimed financial assets in Canada total $6 Billion plus. That treasure is more difficult to find outside of the provinces of Alberta and Quebec where unclaimed property legislation actually exists (BC has voluntary unclaimed property legislation).

Generally, Canada is woefully behind in ensuring that consumer protection in the form of Unclaimed Property Legislation exists for all Canadians. The US and other countries around the world have had such legislation in place for 50+ years You can find a partial list of some of the other sunken treasure in Canada on our website as well as some of the places you can search http://legacytracker.com/facts/unclaimed-in-canada/

Governments around the world are starting to take a proactive role in helping life insurance beneficiaries find the policies they are entitled to.

Unclaimed life insurance polices are a problem I’ve worried about for years and were a major impetus for developing LegacyTracker

Last November, France’s financial sector regulator fined CNP Assurances 40 million euros ($50 million) for failing to do enough to find the beneficiaries of deceased life insurance policyholders. They characterized CNP’s efforts as being “highly insufficient“ . CNP who is the largest insurer in France (17% market share), responded by saying that they really always intended to pay all those unclaimed policies.

In their press release after the news of their fine was released CNP also indicated that it has never derived any profit from unclaimed settlements…”income earned on unclaimed funds had been added to the sum used to pay all policyholders” As an accountant, I’m a bit puzzled by that statement but…onwards.

Since 2007, life insurers in France have had a legal obligation to try to find life insurance beneficiaries of unclaimed policies after a holder’s death.

Prior to 2007, it was up to the heirs to claim the funds . That’s how it currently stands in Canada but this presumes that those beneficiaries or heirs know about a life insurance policy. The Cour des Comptes public audit office in France indicated in a report last year that life insurers have been very slow living up to their obligations to find heirssince the 2007 law was enacted and estimated that unclaimed life policies might be worth at least 2.76 Billion.

So, What about Canadian Life Insurance Beneficiaries ?

The majority of the western world has Unclaimed Property legislation in place which includes unclaimed life insurance policies. However, only Alberta, Quebec and to a certain extent, British Columbia have Unclaimed Property legislation in place in Canada. In recent years, governments have really ‘zoned in” on the Win/Win Opportunity that such legislation provides to residents and their own treasuries. There has been a gradual shift to tighten up the rules around what assets are included in such legislation. An example would be the inclusion of Gift Cards in certain states like New York and New Jersey. And, as is the case in the US, Governments are ensuring that life insurers work diligently to identify unclaimed life insurance policies based on death (“The DMF or Death Master File“ ) In recent years, a national multi state audit project has been underway which has so far resulted in the return of more than $2.7 Billion to beneficiaries and/or State Treasuries. Auditors actually determined that insurers were using the ‘DMF” to stop annuity payments to deceased policy owners but not using the same files to find beneficiaries and to designate the policies as “unclaimed” Sun Life of Canada settled Unclaimed Property complaints with State Insurance regulators in November 2014 for $3.2 Million

Only 34% of Canadians have consumer protection in place in the form of Unclaimed Property legislation

As well, the rules around life insurance policies in most jurisdictions in Canada do NOT include an obligation by the insurer to look for beneficiaries.

Each week I receive approximately 2-3 emails from folks that are looking for some guidance around finding possible life insurance policies. There’s not much I can offer to them outside of what I’ve already offered in earlier posts like this one which also included a summary of the changes in the life insurance landscape over the years..another reason why finding a lost life insurance policy is made difficult,…another reason why legislation is needed and another reason why it’s important to safeguard & share important information about life insurance policies with loved ones and beneficiaries

Inaction is a disadvantage for Credit Unions in Ontario

There’s so much to love about Credit Unions but when it comes to providing Credit Unions an equal playing field in Ontario, I can’t help but feel that the Ministry of Finance is putting them at a disadvantage by their inaction. The inaction I’m referring to relates to their apparent disregard for Unclaimed or Dormant credit union accounts. This inaction & disregard is not helpful to Credit Unions and it’s certainly not helpful to the client/members those Credit Unions serve.

Unclaimed Credit Union accounts can be hard to find

Unlike Unclaimed accounts held by federally regulated banks, Unclaimed Credit Union accounts in Ontario are hard to find unless you know the exact Credit Union you or a loved one dealt with. Federally regulated banks are required to remit unclaimed accounts that have not been active for 10+ years to the Bank of Canada where a searchable online database is available; that database currently includes $532 Million of such accounts. What would be the total value of Unclaimed Credit Union accounts in Ontario ? I’m pretty sure that no one inside the Ministry of Finance or outside has any clue. And that’s the problem.

The Credit Unions and Caisses Populaires Act, 1994 (20 years later)

One might assume that a similar system would be in place for unclaimed credit union accounts held in Ontario as there is for accounts held by federally regulated banks in Ontario. It’s 2014 after all and the Credit Unions and Caisses Populaires Act, 1994 set out the guidelines for Unclaimed or dormant accounts in that legislation. But…

Alas…that’s not the case. While the Ministry of Finance expects that Credit Unions are following the rules around notifications to dormant or unclaimed account holders, they have not yet gone as far as having those Credit Unions remit those accounts to the Ministry as intended.

Why?

Why has it taken 20 years to direct Ontario Credit Unions to where they need to send all of those unclaimed credit union accounts that have been forgotten?

I’ve asked the Ministry of Finance again recently this question. After much delay the Ministry responded but failed to answer that very question.

Here’s their reply

The government recognizes the importance of ensuring that individuals who hold dormant deposit accounts at credit unions are aware of the status of their accounts and have access to the funds held in those accounts.

The Credit Unions and Caisses Populaires Act, 1994 requires that credit unions provide notices to depositors whose accounts are dormant at regular intervals. For example, depositors must be notified 2 years and 5 years after a transaction has last taken place in the account or since the depositor last requested or acknowledged an account statement.

We understand that credit unions have systems in place to ensure unclaimed deposits are properly monitored and that depositors are informed. If an account is dormant for more than 10 years, credit unions are required to remit the amount to the Minister of Finance when directed to do so.

The Minister of Finance has not yet specified a date when the funds should be remitted to the government

We hope you will find the information provided useful.

Sadly, No. The information provided by the Ministry of Finance recently is not very helpful; not very helpful at all. And, most certainly, the inaction on the part of the Ministry of Finance with regards to Unclaimed Credit Union accounts is generally not helpful to Ontario Credit Unions or their members.

Let’s be clear: No one loses their hard earned/tax paid financial assets on purpose.

Ontario credit union members deserve to have one place to search & find their Unclaimed Credit Union accounts. Let’s get it done Ontario.

$127,000 in lost & returned savings bonds – make for a pretty perfect Christmas story but…

A (very kind) Massachusetts bargain hunter last month returned $127,000in matured U.S. savings bonds he found in a desk that he had paid $40 for. The bonds had been tucked away for safekeeping for many years despite the fact that the owner hadn’t forgotten about the bonds; he had just forgotten what he had done with them. He had searched for the missing bonds for many years even going as far as seeking help from the US Federal Government via their unclaimed bond program. His attempts were unsuccessful and so the recent return of the long-lost bonds makes for a really nice story of kindness this time of year.

The Christmas angel is Phil LeClerc, of Weymouth, Mass who deserves a great Christmas after making it a Merry Christmas for another family in Massachusetts. Mr. LeClerc promptly returned the long-lost savings bonds after finding them quite by accident, to the auction house where he had made the desk purchase.

The lost & returned U.S. savings bonds — in $500, $1,000 and $10,000 denominations — belonged to a 94-year-old man who did not have enough money to pay to live in an assisted living home…but now he does. Those lost & returned savings bonds will be tremendously helpful to his future care.

A happy ending indeed which is a nice boost to our faith in human kindness but sad at the same time and a lesson for others. What if the bonds had not been found & returned? The family had been in the process of liquidating all of the man’s assets in order to help care for him; hence the sale of the now-famous desk. There seems little doubt that the bonds could have been useful for many years. The (anonymous) bond owner had been looking for the bonds for many years and so it seems safe to assume that the emotional and financial drain had taken a toll on him & his family.

No one loses Financial Assets on purpose.

Lessons abound in this story.

It’s important to store vital documents in a safe place and share that information with those you trust. Copies of hard to replace documents are also helpful and would have proved really helpful in this case where the elderly gentlemen knew he had purchased the bonds but had no proof or documentation in order to claim them.

Our goal with LegacyTracker is to prevent exactly this kind of misfortune from happening. LegacyTracker helps families secure & share important information including copies of critical documents with trusted loved ones or advisors.

Providing life insurance to your loved ones is great but lost insurance policies cause additional heartache

It happens all too often. Insurance documentation from years ago may have been misplaced or lost causing heartache or difficulty for you, a loved or an executor.To make matters worse, tracking down an insurance policy is made more difficult by the number of changes that have taken place in the Canadian Insurance industry over the years. A multitude of mergers, takeovers & name changes has occurred and will continue to occur.

Here’s a list of many of the Insurance company mergers and name changes that best emphasizes that point:

Looking in the usual places for policy information makes sense like safety deposit boxes or filing cabinets. Contacting known professional advisors (beyond just an insurance agent) is a good thing to do in case they have copies of such documents. Employers or previous employers as well as pension administrators or membership directors of professional associations would be aware of group policies that often times individuals don’t think to make note of. The same would apply to any insurance that an individual might have purchased by way of their credit card issuer.

Beyond that…If you need some assistance in tracking down a life insurance policy, the OmbudService for Life & Health Insurance (OLHI) may be able to assist. The OLHI is a national independent complaint resolution and information service for consumers of Canadian life and health insurance products and services, including life, disability, employee health benefits, travel, and insurance investment products such as annuities and segregated funds.

Safeguarding insurance information & documentation is key but sharing that information with beneficiaries and loved ones is also critical. There is no obligation on the part of insurers to come looking for beneficiaries at any point.

Experts estimate that some 20-30% of insurance policies go unclaimed.

Billion dollar lawsuits are still ongoing in the US where each state requires unclaimed policies to be transferred to the state for safekeeping and inclusion in their open database of unclaimed financial assets. That’s an essential part of Unclaimed Property Legislation that only 2 provinces enjoy currently in Canada.

The OLHI may be of some help but before a policy search for possible insurance coverage on a deceased’s life can take place, 2 requirements must exist:

There must be a reasonable basis for a search-basic evidence must exist to support the fact that some unlocated coverage does exist.

Specific factual data about the deceased must be made available.

This kind of search will not uncover contracts acquired outside of Canada, nor will it uncover coverage obtained under employer group contracts. We understand that approximately 22% of those who have requested a search for a lost life insurance policy via the OLHI have found one.

The OLHI also provides tips for conducting your own search. However, it’s really unfortunate that unlike many other developed countries, the majority of Canada does not have Unclaimed Property Legislation in place which would also provide an online searchable database.

Our good friend Michael Hartmann has been a life insurance agent for over 10 years and recognized the problem of lost insurance policies over 6 years ago when his own father did without sharing all of the information on his policies. Michael went to work and established http://www.findyourpolicy.com .

FindYourPolicy offers a secure online insurance registry where insurance policy information can be secured for free. The charge for searching is less than $20. Michael indicates that the average insurance policy is approximately $120,000.

Spending hard-earned after tax income on an insurance policy for the benefit of someone you care about makes safeguarding & sharing your policy information a worthy ToDo. No one can secure this information as well as you can. Please do it.

Our LegacyTracker financial organizing tool provides the ability to organize, safeguard and share your important information and documents like life insurance policies, with loved ones or beneficiaries, executors or advisors.

Are your ducks in a row?

$58 Billion in Unclaimed financial assets in the US plus another $4-$6 Billion in Canada should be enough of a reason to get organized. These financial assets were no doubt hard-earned. A good majority of these assets are also for the most part, tax paid. $63 Billion or so waiting to be claimed by the individual that lost track or the legal beneficiaries of those assets; It’s a lot of money that could make a really BIG difference to many families and loved ones.

Unclaimed financial assetscome in a variety of forms:

Bank or Credit Union accounts

Stocks/Bonds

Uncashed dividends

Utility deposits or refunds

Other prepaids, deposits or refunds

Trust distributions

Inheritances

Annuities/Pensions

Education funds

Prepaid funeral contracts

Mineral royalties such as oil, gas, or mining

Insurance policy claims/refunds

Contents of abandoned safe-deposit boxes

Etc.

Unclaimed financial assets also reside in a variety of places:

While held initially by a variety of different financial organizations or institutions, if you live in the US, after a set period of time, unclaimed financial assets will be gathered up by each State Treasury for safeguarding while at the same time, entered into an online search base where hopefully the legal owners or heirs will find those assets and make a claim.

Unclaimed Property legislation in the US is a win/win for the State and for the legal owners of those assets as the State is able to use those funds until they are claimed.

The US estimates that 1 in 10 Americans has unclaimed funds belonging to them. Unfortunately, only 2 provinces in Canada (Alberta and Quebec) have comprehensive unclaimed property legislation in place and provide searchable databases. BC has a voluntary system in place.

The staggering amount of unclaimed financial assets and the alarming rate at which unclaimed assets are increasing should be sufficient evidence of why all individuals and families need to properly safeguard their financial assets and the information about those assets appropriately. Helping with that challenge, is one of the core missions behind LegacyTracker.

Getting organized means centralizing information about your assets and sharing that information in case of an emergency or what we call a “What if” situation.

LegacyTracker enables you to keep track of your assets on an ongoing basis and share that information with loved ones (or advisors) as you wish when you wish.

We’ve made no secret of the fact that we love Credit Unions but…

Why is finding an unclaimed Credit Union balance in Canada so …complicated to say the least ?

There`s over $532 million in unclaimed bank accounts held by the Bank of Canada. This balance is made up of Canadian dollar accounts held originally by a federally regulated bank where the account was inactive for a period of 10 or more years. The Bank of Canada makes available a searchable database of unclaimed bank accounts which anyone can search here

Although we remain disappointed about the fact that the Bank of Canada`s searchable database does not include inactive accounts held in a foreign currency (since they are very familiar with exchange rates), the process and the rules seem simple enough.

If only Canada had such clarity in the case of unclaimed accounts held by Credit Unions or Financial Cooperatives !

Alas, Credit Unions and Financial Cooperatives are provincially regulated and unfortunately, each Province has their own rules (or doesn’t). More unfortunately, only 3 provinces currently make available a searchable database available to the public (Quebec, British Columbia and Nova Scotia)

Here`s a short rundown on what we know about Unclaimed Balances held by Credit Unions in some (apologies-not all) Provinces across the Country:

Alberta: After 10 years of inactivity, unclaimed account balances are transferred to the Credit Union Deposit Guarantee Corporation (CUDGC) which holds the money for another 20 years before it is considered revenue for Alberta. As of 2013, the CUDGC held some $1.36 Million in unclaimed accounts.

British Columbia: After 10 years of inactivity, unclaimed account balances over $100 are transferred to the BC Unclaimed Property Society which holds the account indefinitely. A searchable database is available here

Nova Scotia: After 7 years of inactivity, unclaimed accounts are transferred to the Nova Scotia Credit Union Deposit Insurance Corporation (CUDIC). The CUDIC holds the balance in perpetuity. As of 2013, the Nova Scotia Credit Union reported $577 Thousand in unclaimed accounts. A searchable database is available here

Quebec: After 3 years of inactivity, unclaimed accounts are transferred to Revenu Quebec where the balances are held for 30 more years for amounts over $500 or 10 years if the amount is less than $500. A searchable database is available here

Saskatchewan: After 6 years of inactivity, unclaimed accounts worth more than $5,000 are transferred to the provincial Credit Union Deposit Guarantee Corp. The balance of unclaimed accounts in 2013 was $244 Thousand. A searchable database is expected to be available soon

Ontario: Section 182 of the Credit Union and Caisses Populaires Act in Ontario notes that accounts that have been inactive for a period of 10 years are to be forwarded to the Ministry of Finance in accordance with the Minister`s directions. Unfortunately, those directions have still not been provided despite the fact that the Act became law in 1994. The Financial Services Commission of Ontario which administers the regulations pertaining to Credit Unions and Caisses Populaires in Ontario, can not provide us with any detail as to why there has been a delay of 20 yearsby the Ministry of Finance in providing `directions`. Yikes.

That’s more than unfortunate for account holders or heirs in Canada`s most populous Province who should be able search & claim accounts that they are legally entitled to in one central place.

We are left to wonder why Minister of Finance in Ontario seems so indifferent about this matter given the state of finances in Ontario and the fact that this would be a welcome help to families who have for one reason or another lost track of an account

This ‘Mish Mash’ of rules and procedures depending upon your jurisdiction, is a Good Reason to safeguard your financial assets & all of your financial and legal information in a secure and accessible location. We have one for you – LegacyTracker.

There’s a staggering $400 Million + in matured but UnredeemedCanada Savings Bonds.

AND..

$400 Million in Lost or Unclaimed Canada Savings Bonds is a lot of hard-earned cash that could make a difference to many.

And while it seems, a little UnCanadian, no one is looking for you or for your family member that may own one of these bonds. No one. That’s why it’s worth checking for yourself or for the sake of a loved one or friend.

If you think you or a family member has lost a Canada Savings bond (CSB) along the way…here’s some helpful info. if you are not sure if you or a family member has lost a CSB, I would urge you to call anyways as there is no downside, because NO ONE in the Bank of Canada is looking for owners of these Lost bonds. I can’t determine why lost Canada Savings Bonds are not listed on the Bank of Canada website alongside lost bank accounts. It’s a really BIG mystery.

However, given that T5s have been issued for the interest that these bonds have earned (which also remains unclaimed) AND the fact that tax returns have been filed by the legal owners or returns have been re-assessed on behalf of these owners, it should follow, that many of these owners could be tracked down. However, that’s not the case (the looking). We’ve volunteered to list lost CSB’s here on this website; we await a response

In any case, here’s some info on searching for lostCanada Savings Bonds

Gather up any info you have like Certificate Serial #, Customer ID, address at the time of purchase and the exact name that the bond would have been issued on behalf of

If the bond has been stolen; you should report it to police. CSB customer service will ask you for a Police report #

If the bond holder/owner is under 18, the parent or legal guardian must contact customer service. You may be requested to provide proof that you are the parent or legal guardian

If you are calling on behalf of someone unable to make the call; have them present if possible.

If you are calling on behalf of an estate or an individual that has been incapacitated, you will be asked to provide a certified or notarized true copy of any document that is required to provide proof of your authorization to act on their behalf (Like a Will or Power of Attorney or an Estate Transfer form)

If there are 2 owners listed on the bond; both bond holders must speak with Customer service

Grateful thanks to Ross Martowits of Canadian Press for Shining some much-needed light on our very Canadian Problem or as I refer to it…Canada’s Economic Plan in waiting. Ross took the time to speak with us this week and his article ran today in many papers across the Country today.

I refer to the need for Unclaimed Property Legislation in Canada as a very Canadian problem because in most parts of the developed world such legislation exists and it has for many years like in the US, most of the UK, Australia, New Zealand, etc. Kenya has legislation…but only in 2 provinces in Canada does any sort of comprehensive or consistent legislation exist (Alberta and Quebec) Canada needs Unclaimed Property Legislationin every Province – it should be considered an important part of Consumer Protection Legislation as it is in other Countries.

We’re on a mission to shed light on the problem while completing development of an online solution for individuals to use in order that they can securely and simply document their important financial & legal information

You can read the article as published by the Toronto Star online here or we’ve copied it here

Experts estimate unclaimed assets across the country could top $4 billion to $7 billion, and the amount is growing.

By:Ross Marowits

The Canadian Press,Published on Fri Jul 04 2014

MONTREAL—Millions of Canadians unknowingly have billions of dollars worth of their money and assets being held by companies and government agencies, available for recovery.

The Bank of Canada alone is holding nearly $1 billion from bank accounts and Canada Savings Bonds, but experts estimate unclaimed assets across the country could top $4 billion to $7 billion.

Canada is way behind other developed countries in having comprehensive unclaimed property legislation for all its residents, says accountant Brenda Potter Phelan.

“A country so progressive, so socially minded as Canada I find it hard to stomach that we don’t have some safeguards. In the U.S. and around the world they find this a main part of consumer protection,” she said from Cambridge, Ont., where she runs a website and blog called Legacy Tracker.

Quebec and Alberta are the only provinces with comprehensive laws, while British Columbia has a voluntary system. But Ontario is studying the adoption of its own system that could shine the light on a large treasure of unclaimed assets, including insurance policies, stocks and pensions.

In Canada, the total value of unclaimed assets is unknown but experts believe the numbers are staggering and growing.

The Bank of Canada’s unclaimed accounts grew 52 per cent over five years to reach $532 million as of December, with 93 per cent of accounts worth less than $1,000. The bank returned only $14 million to owners last year.

Non-redeemed Canada Savings Bonds and Canada Premium Bonds totalled $391 million as of March 31. The Office of the Superintendent of Bankruptcy Canada holds some $18 million.

Quebec has about $300 million of unclaimed financial and other assets, while B.C. and Alberta have tens of millions each.

Online searches can be conducted in each of those provinces and with the Office of Superintendent of Bankruptcy, but all Canadians can look at the Bank of Canada website.

Searches conducted during research for this story identified more than $10,000 of unclaimed financial assets for family and friends.

“I am very surprised,” Syma Shaffer said when told about the discovery of nearly $1,400 from a Montreal bank account closed in 1991.

Federally regulated banks are required to hand over unclaimed deposit accounts, term deposits & GICs and negotiable items such as drafts, money orders and certified cheques to the central bank after a decade of trying to notify the owner.

The largest single unclaimed account totalling $552,000 was transferred from a Royal Bank branch in Montreal. Its owner, Manuel Vinhas, had two dormant accounts worth nearly $677,000.

The bank wouldn’t comment on specific cases, citing privacy issues.

Greg Crone was elated when informed he had more than $6,600 of assets being held, likely from a deposit related to a 2003 car purchase.

But the Ontario resident couldn’t understand how RBC was unable to locate him after a move to another city since he has the same bank account.

“It’s pretty shocking. When they want to find you because you’re late on a payment or something they have no trouble finding you,” he said in an interview.

Experts say it’s not uncommon for people to lose track of their assets, forgetting old bank accounts or paid up life insurance policies. People often move without forwarding their mail for more than a year and many people die without their heirs knowing much about their finances.

“Some people live quite private lives and they die unexpectedly and people don’t even know to look,” said Darren Jack, chairman of a task force for the Unclaimed Property Professionals Organization.

Before you roll your eyes again at the thought of another Economic Action Plan Commercialplease bear with me as this is just a (repeated) Requestfor another Economic Action Plan that all Canadians really should care about.

Economic Action Plans in Canada were implemented first during the global recession in 2009. The intent was to spur Economic growth & to support families and communities. So in that way, certainly the Economic Action Plan I have in mind would do just that in a BIG & meaningful way. However, unlike the typical Economic Action Plan that we are familiar with, this one should cost millions less but generate more than a billion of economic action as it’s all about ensuring that each Province and Territory across Canada put into place comprehensive & consistent Unclaimed Intangible Property Legislation.

Let’s connect (reunite) Canadians with the hard-earned/unclaimed (often tax paid) financial assets that they are legally entitled to. Most of Canada is so far behind in putting into place such legislation that it makes it difficult to pinpoint the actual value of Unclaimed Financial assets currently. But those of us who talk about this matter (and there’s only a few of us) estimate that there’s $5-6 Billionor so that all Governments across Canada (outside of Alberta & Quebec) are failing to gather up, safeguard and share information on for the benefit of the majority of our population.

Yes.It’s a lot of money. The Bank of Canada alone has on deposit approximately $1Billion in the form of Unclaimed Canadian $ Bank accounts (from federally chartered bank accounts only) and Unclaimed/Matured Canada Savings Bonds. Check out our Fast Fact sheet on Unclaimed Financial Assets for some of the info that we have gathered on this journey.

Let’s face it.

Nobodysets out to lose their financial assets on purpose & people generally work hard for their money. but, as we know far too well, people can become incapacitated or die quite suddenly or forget or move or not have the financial literacy skills required to ensure that their money is properly safeguarded for their own use or for their heirs down the road. That’s why most of the Western World like the US considers Unclaimed Property Legislation to be an important part of Consumer Protection Legislation. The US has had such legislation in place for more than 50 years & currently holds approximately $58 Billion in unclaimed assets.Yes. $58 Billion. The difference is that a lot of this $58 Billion in the United States can be found on individual State websites. State Treasuries proactively look for the legal owners of those funds. Given that the problem of Financial assets is growing at an alarming rate it’s time (overdue) Canada and the provinces all got on board.

There’s lot of info on this blog about the need for Unclaimed Property Legislation. We’re pretty obsessive passionate about this problem, so you can find out more information about Unclaimed Funds by reading some of our prior posts. This one provides information on the status of Unclaimed Property legislation across Canada; What’s Up with Unclaimed Property (UP) in Canada?

Contents of Safety Deposit Boxes-which may include valuables and sentimental items

Uncashed payroll cheques

Unused Gift Card balances

As the fast growing US balance of Unclaimed Financial provides evidence of, legislation alone will not solve the problem of hard-working citizens losing track of their financial assets. We’ve also built a simple, secure solution that helps individuals and families better organize their important information in order to 1) Engage more proactively in financial/estate planning, 2) Enhance their level of emergency preparedness and 3) to help safeguard hard-earned financial assets from being lost or forgotten. We’d love to talk to you about that especially if you are financial services provider who can see the benefit of providing it to your clients and prospects for mutual benefit. A Win/Win.

But we also think that all Canadians deserve to have their financial assets safeguarded by Unclaimed Property Legislation. We think reuniting Canadians (or their heirs) with their own money is the right thing to do. It’s good for everyone including the economy to get this money back to rightful owners and back into circulation. We’d love to know what you think on a very simple poll that follows. And…we wish you and your family a safe and Happy Canada Day. We have much to be thankful for in this great Country.

There is a flurry of activity around the world with unclaimed property laws but in Canada…such change seems slower than slow and long overdue. Only 2 Provinces have any sort of comprehensive legislation relating to Unclaimed Financial Assets (AKA “Lost Assets” No one loses their Hard earned (and often tax paid) Financial Assets on purpose so..why is Consumer Protection in the form of Unclaimed Intangible Property Legislation not in place across all Provinces & Territories.

Here’s what is and what is not happening in Canada.

But some history and some background on UUIPA (?) first:

Back in 2003, The Uniform Law Conference of Canada (ULCC) developed a Uniform Unclaimed Intangible Property Act (UUIPA)

The Act outlined some guidelines/rules for the benefit of Canadian jurisdictions which could be followed; making the process of actually implementing a program a lot easier (!) These rules as outlined, mirrored to a great extent, what has been in place for 50+ years in the US.

The UUIPA specified guidance/rules relating to the following
• Each enacting province or territory would be entitled to receive unclaimed intangible property if the property belongs to an owner whose last known address as shown on the holder’s records is in that province or territory
• Provisions around owner notification process by holders,
• Property would be remitted after a statutorily defined period of time and
• Provisions for a public registry of unclaimed property to be established.

As written, the UUIPA applies to credit balances, shares, cash, bonds, amounts due and payable under insurance policies, trust funds, distributions from retirement or pension plans, gift certificates, etc. The dormancy periods are generally 3-5 years depending upon the property type.

Sadly, despite the good work of the Uniform Law Conference of Canada (ULCC) back in 2003, only 4 provinces to date have taken ANY action on unclaimed intangible property rules and that does not mean rules are in place. Quite the contrary…Ontario
Ontario was the first province to consider unclaimed property way back in 1989when the province passed the Unclaimed Intangible Property Act. However, the statute was not proclaimed into force and the legislation was repealed at the end of 2011.

It’s hard to believe.

Over the span of 22 years, which included 4 different Premiers from 3 different parties, Ontario could not get the program actually into place for the benefit of Ontarians and the Province generally. Sad. Sad.

In any case, the 2012, the Ontario budget announced Ontario’s intention to try again and create an unclaimed property scheme that would mirror that of the US. The proposal would require current “holders” of intangible property in Ontario to remit such amounts to the Government & put in place a program where legal owners would be able to find and claim those amounts but until such time, the funds would be used for the benefit of all Ontarians. Property to be included in the program would include amounts due under insurance policies, unpaid wages and interests recognized by share certificates and bonds, as well as other property types.

Last June (2013) the Ontario Ministry of the Attorney General (OMAG) held a series of round table stakeholders meetings in Toronto for stakeholders to express their opinions related to the new law & sought a second round of written comments from stakeholders which were due back on Sept. 18. (Yes we wrote 8 pages)

While holders may be concerned about a potential “burden” of paperwork and the retroactive application of such legislation It’s time for Ontario to have a program encompassing as much unclaimed property as possible Actually, it’s overdue.

Read more about Ontario’s proposal and related discussions on Ministry of the Attorney General Website the here

Quebec
Quebec has had a fairly comprehensive unclaimed property program since 1997 and that program has incorporated several aspects of the UUIPA into their program. However, Quebec’s program is not quite as broad in coverage as Alberta’s and is more focussed on financial assets such as securities, dividends, life insurance proceeds but not for example, payroll or accounts receivable credit balances. Holders include financial institutions, insurance companies, trust companies, mutual fund and other investment dealers, credit unions, pension plans holding financial assets, property of successions, property of dissolved businesses, property without an owner and property located in Quebec whose owner is unknown or untraceable. The minimum threshold is property valued at $100 or more. Like the UUIPA (and in the U.S.), jurisdiction is based on the last known address of the owner.
The dormancy period for most of the property types covered by Quebec’s unclaimed property law is 3 years and specifies procedures relating to reasonable searches for rightful owners and notifications as well as claim procedures.

Alberta’s Unclaimed Personal Property and Vested Property Act (UPPVPA) came into effect on September 1 2008. The UPPVPA extends to most property types that are specified in the US. It specifically excludes gift certificates, retail business credits, and certain other property from its scope but does apply to uncashed checks (including payroll), accounts receivable credits, refunds, bonds, shares, amounts due and payable under insurance policies, retirement and pension fund distributions, etc. However, Alberta does specify a threshold amount of $250 or more for the program. Also, while the law was intended to apply to securities, it has delayed implementation of the program to securities pending a review by the Alberta Treasury Board and Ministry of Finance (ATBF)

British Columbia
The British Columbia form of unclaimed property law and regulations vary significantly from Alberta and the US in many respects. The program applies only to certain types of property valued at various dollar thresholds which can be confusing. The BC program includes the BC Unclaimed Property Society which was established as a non-profit society in 2003 to administer the unclaimed property program for British Columbia for the benefit of the Vancouver Foundation.
The program also specifies between mandatory or voluntary holders. Mandatory holders are required by law to report and remit unclaimed property to the BC Unclaimed Property Society whereas voluntary holders are not mandated by law to report and remit but strongly ‘encouraged’ to do so. Voluntary holders can maintain control of the property and just report.
Mandatory Holders include Municipal and provincial courts, credit unions, and real estate agents, debt collection agencies, and companies being liquidated.
Voluntary Holders include Common types of property voluntary holders report and remit are trust funds, property insurance and closed pension plans.
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Read more about the BC unclaimed property program at http://www.unclaimedpropertybc.ca/submit.php

So that’s about it. That’s about all.

There’s not much to write about with respect to Unclaimed Property Legislation being recognized as a “To Do” in Manitoba, Saskatchewan, Nova Scotia, Prince Edward Island, New Brunswick, Newfoundland or the territories of Yukon, Northwest Territories and Nunavut

1 Province with a fairly comprehensive program.

1 Province with a somewhat comprehensive program in place.

1 Province with something in place.

1 Province thinking about putting a program in place (twice) and…

6 Provinces and 3 Territories who don’t seem to see the WIN/WIN that Unclaimed Intangible Property Legislation could bring to individuals, families and government

The US has had Unclaimed Property Legislation in place for 50+ years or so in each State. The US looks upon such legislation as an important component of consumer protection legislation. The US has approximately $58 Billionto be found (and it can be found)

Why not in Canada? Our best guess and the few of us that discuss this problem on a regular basis is that Canada has most likely somewhere between $5-$6 Billionin Unclaimed Intangible Assets that’s a lot of economic action waiting to happen.

We’ve built a simple, secure solution that helps individuals and families better organize their important information in order to 1) Engage more proactively in financial/estate planning, 2) Enhance their level of emergency preparedness and 3) to help safeguard hard-earned financial assets from being lost or forgotten

But we also think that all Canadians deserve to have their financial assets safeguarded by Unclaimed Property Legislation. We’d like to know what you think: